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A risky bond is priced using a required return of . If the real risk-free rate is , expected inflation is , and the bond carries a default risk premium of and a liquidity premium of , what maturity premium is implied?
A risky bond is priced using a required return of 7.4%. If the real risk-free rate is 1.2%, expected inflation is 2.5%, and the bond carries a default risk premium of 1.8% and a liquidity premium of 0.9%, what maturity premium is implied?